On July 4, we shoot fireworks, attend picnics, watch parades and
otherwise celebrate our nation's independence and the many freedoms
we enjoy.

But as you go through life, you'll find out how important it is to
work towards another type of freedom - financial freedom. That's
why you need to put strategies in place to help you work towards
your own Financial Independence Day.

And there's no way to "sugar-coat" this task, because it will be
challenging. In recent years, a combination of factors - including
depressed housing prices, rising health care costs, frozen or
eliminated pension plans and the financial market plunge of 2008
and early 2009 - has made it more difficult for many of us to
accumulate the resources we'll need to enjoy the retirement
lifestyle we've envisioned.

In fact, the average American family faces a 37 percent shortfall
in the income they will need in retirement, according to a recent
report by consulting firm McKinsey & Company.

But now that we've gotten the "bad" stuff out of the way, let's
turn to the good news: You can do a great deal to work towards
financial freedom during your retirement years. Here are some
suggestions that can help:

Save and invest more: Obviously, the younger you are, the greater
the benefit you'll get by increasing your savings and investments.
But whatever your age, you'll find that it pays to save and invest
more.

During difficult economic times, of course, it's not always easy to
boost your savings and investments, but try to find ways that are
as "automatic" as possible.

For example, whenever you get a raise, increase your 401(k)
contributions, which come directly from your paycheck. And whenever
you get a "windfall," such as a tax refund, try to use part of it
for your IRA or another investment account.

Rebalance your portfolio: It's always a good idea to periodically
rebalance your investments to make sure they are still aligned with
your goals and risk tolerance.

But it's especially important to rebalance as you get older and you
near retirement. At this stage, you'll want to decrease the
volatility in your portfolio and lock in what gains you've
achieved, so you may want to move some (but certainly not all) of
your more aggressive investments into less volatile ones.

Cut down on debts: It's easier said than done, but anything you can
do to reduce your debt load will free up money to invest for your
retirement. Work diligently to pay off whatever debts you can and
examine your lifestyle to find areas in which you can reduce
spending.

Consider working part-time during retirement: Many Americans are
now living longer and enjoying happy, healthy retirements. In fact,
the concept of "retirement" has changed so that it now includes any
number of activities - including part-time work in a completely
different area from one's previous career.

If you are willing to do even a little part-time work during your
retirement years, you can greatly reduce the financial pressures
you may face during this time of your life.

The Fourth of July comes and goes quickly. So put strategies in
place now to help you work towards your own Financial Independence
Day.

This article was written by Edward Jones for use by Ahwatukee
Foothills Edward Jones Financial Advisor Kim DeVoss, CFP. Reached
her at (480) 785-4751 or Kim.DeVoss@edwardjones.com.